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History and Background

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh. Telenor acquired the license for providing GSM services in Pakistan in April 2004, and had launched its services commercially in Islamabad, Rawalpindi and Karachi on 15 March 2005, and on 23 March 2005, Telenor started its services in Lahore, Faisalabad and Hyderabad. Telenor has its corporate headquarters in Islamabad, with regional offices in Karachi and Lahore. On January 28, 2005, Telenor established its first call centre in Lahore. Telenor is the 2nd largest network of Pakistan after Mobilink. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country. Telenor covers a total of coverage area in more than 3000 cities, towns and highways throughout Pakistan, making it the 2nd largest GSM service provider in Pakistan. Telenor Pakistan has more than 5,000 cell masts throughout Pakistan, making it the 2nd largest network in Pakistan. It has GPRS service and EDGE service across its network in Pakistan. Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan. Telenor currently has these dialling codes, 0342, 0343, 0344, 0345, 0346, 0347, and 0350. Telenor is keeping ahead by investing heavily in infrastructure expansion. With USD2 billion already invested, it has extended agreements with vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry. Telenor spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities. Telenor has a network of 23 company-owned sales and service centres, more than 200 franchisees and some 100,000 retail outlets. Telenor group: The Telenor Group is an international provider of high quality telecommunication, data and media communication services with mobile operations in 13 markets across the Nordic region, Central and Eastern Europe and in Asia. The Telenor Group is among the largest mobile operators in the world with over 165 million mobile subscriptions and a workforce of approximately 40,000. Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia.

Structure of Telenor Pakistan
The structure of Telenor Pakistan is mechanistic.

The overall structure of the organization is functional. As there are seven departments working each headed by the managers, who control the overall operation of the department the human skills and The decision making at higher level is highly centralized but Telenor Pakistan does support employee empowerment and decentralised decision making is also supported at some lower levels, as employee are offered to give their suggestions and if found favourable and feasible for the company they are followed.

Structural dimensions of Telenor Pakistan
y FORMALIZATION:

Following the functional structure, level of formalization is high. Policy manuals, job descriptions, rules & regulations and code of conducts are made and followed but the overall environment is relaxed with impartial opportunities available for all the employees.
y SPECIALIZATION:

At Telenor the level of specialization is high, as the tasks being performed are clearly defined and separable division of jobs is also visible.
y STANDARDIZATION:

Standardization is moderate at Telenor Pakistan, as the procedures and certain rules and regulations are defined, and the employees perform their tasks in a uniform manner. The aspect of standardization is quite prominent is the structure of Telenor.
y HIERARCHY OF AUTHORITY:

At Telenor the hierarchy of authority is shorter, narrow span of control as 5-6 employees¶ works under one supervisor/manager.
y CENTRALIZATION:

The main decisions are taken by the higher authorities so it can be said that mainly centralized decision making is done but at lower levels employees are given opportunities to give their suggestions and if found favourable for the organization are even followed.

It can be said that lower level employees are encouraged for taking part in decision making and it also defends employee empowerment.
y COMPLEXITY:

The level of complexity in the structure of Telenor is moderate.
y PROFESSIONALISM:

Level of professional is high at Telenor. The formal education and training of employees at various levels is considered fundamental.

Goals, strategies and Effectiveness
GOALS:
o Official goals:

Telenor¶s vision crystallizes its customer focus as the cornerstone of everything they do. Telenor¶s values describe what behaviours are necessary to realize that vision. Telenor¶s corporate responsibility mindset ensures that its vision and values nurture social concern and help them create shared value. Telenor¶s Vision Telenor¶s vision is simple: We're here to help

Telenor exists to help its customers get the full benefit of communications services in their daily lives. The key to achieving this vision is a mindset where everyone at Telenor works together: Making it easy to buy and use their services, delivering on their promises, being respectful of differences, inspiring people to find new ways. Telenor believe in four core values: Make it Easy They're practical. They don't complicate things. Everything they produce should be easy to understand and use. Because they never forget they 're trying to make customers' lives easier. Keep Promises Everything they set out to do should work, or if it doesn't, they¶re here to help. They 're about delivery, not over promising, actions not words.

Be Inspiring They¶re creative. They strive to bring energy to the things they do. Everything they produce should look good, modern and fresh. They are passionate about their business and customers. Be Respectful They acknowledge and respect local cultures. They do not impose one formula worldwide. They want to be a part of local communities wherever they operate. They believe loyalty has to be earned. Telenor¶s Mission: ³Telenor's primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general. We strive to be a driving force in creating, simplifying and introducing communication and content solutions to the marketplace.´

o Operative goals: Overall performance goal:

To be the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan.
We will aim to offer services that support and improve your daily life We will make sure our services are easy to use and our prices are

transparent and understandable.
We will only communicate in an honest and truthful way We will treat you with respect and friendliness and give prompt and

informed service
We will protect your personal information and respect your right to

privacy
We will listen to and value your feedback Employee development goal:

Telenor Pakistan¶s activities should serve to illustrate that business success in demanding markets can be achieved without compromising ethical principles or international norms. Our Codes of Conduct have been adopted by the Telenor Board and are a key management tool for influencing all our activities. The Codes of Conduct cover areas that are important for ensuring solid business ethics in all aspects of our activities. They contain specific and practical rules, and set the standards for how individual employees should conduct business

when faced with competition and demands for meeting business objectives. Failure to comply with the Codes of Conduct results in sanctions suited to fit the nature and extent of unauthorized actions. The Codes of Conduct apply to managers, employees, hired staff and anyone acting on behalf of Telenor Pakistan.
Market goal:

Telenor's primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general. We strive to be a driving force in creating, simplifying and introducing communication and content solutions to the marketplace.
Innovation and change goal:

We want to make it easy for customers to get what they want, when they want it. We will keep promises and deliver what we say. We will innovate to deliver fresh ideas. And, as an international company, we will be respectful of our customers and their local cultures. Productivity goal: Provide the high quality, excellent service, low operating costs, and giving top priority to meeting customer requirements to enhance their competitiveness and profitability.

According to the Porter¶s competitive strategies Telenor is following the DIFFERENTIATION strategy. In the minds of its customers compared to its competitors, Telenor extensively differentiate itself on the basis of better service and best coverage overall Pakistan. Telenor is the only network that has strong network widespread in Pakistan. Its customers are mainly attracted due to its wide ranged network extended over the entire country and also because of the newly launched service like easy paisa i.e. payment of utility bills and transfer of money countrywide that can facilitate everyone.

o Miles and snow¶s strategy topology:

According to the Miles and snow¶s strategy topology Telenor follows the PROSPECTOR STRATEGY as it is keeping pace with the dynamic environment and innovations side by side. Telenor is being efficient in the present service being offered like Persona, DJuice, mobile internet, SMS & Talkshawk packages and keep emphasizing on the creative and innovative packages to facilitate the current and prior customers. Telenor is said to be an efficient and more revolutionary at the same time as it is innovating as well as strengthening its market simultaneously.

§ Miles and snow¶s strategy topology

o Balanced Effectiveness Approaches:

I. Constituency/stakeholder approach: Telenor pursuing purely stakeholder¶s approach as described in the goals: ³Telenor's primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general. We strive to be a driving force in creating, simplifying and introducing communication and content solutions to the marketplace.´ II. Competing value approach: Telenor Pakistan is mainly focusing externally but also internally focusing and the structure of the organization is flexible.
So Telenor falls in both the Rational Goal and Open Systems Emphasis

Effectiveness value model

The External Environment
Environmental domain:
y Task Environment

Task environment actually include all the sectors with which an organization interacts and that have a direct impact on the organizational ability to achieve its goals. Telenor¶s task environment includes:
o Industry sector

The competitors of Telenor include Mobilink, Ufone, Warid, Zong. And Telenor is definitely facing issues related to the market capturing compared to its competitors because of the hard-hitting competition.
o Human resource sector

Human resource sector is one of the most demanding an most impacting sector for any organization and definitely for Telenor being in Telecom industry it human can directly even the repute of Telenor. Many trained personnel are hired for the call centre jobs that deal with thousands of customers daily. And that create certain impact about the company¶s standing.
o Market sector

The consumer sector of telecom industry is increasing day by day and does influence the company. For companies providing more satisfactory services make a long term good relation with its consumers.

y General Environment

General environment includes those sectors that might not have a direct impact in the daily operations of an organization but indirectly it may influence it. Telenor¶s general environment includes:
o Financial resources sector

At Telenor there are no issues obtaining the finances. The organization has no debts; hence it is pretty stable in this sector.

o Technology sector

The right time response to the technological change, obviously according to changing economic trends the company¶s policies should change. GPS, EDGE, WAP, GPRS all these technology were introduced in Pakistan, Telenor is dealing well with this factor and it is far ahead as compared to its competitors. Mobile TV is one example and Edge service in another one.
o Economic conditions sector o Government sector

The rules and regulations newly imposed taxes and the services are all the registered telecom companies are to abide by those regulations.
o Socio-cultural sector

With context to the above described general environment sectors that can impact company¶s goals play a vital role during the life time of the company. Most importantly the government sector and the socio-cultural sector also give an impact in achieving company¶s goals.

y International Context

International context includes the international sector that can directly effect. As a result the environment for all organizations is becoming extremely complex and competitive. Few years back, when cartoons of Holy Prophet S.A.W.W were drawn by Denmark¶s cartoonist influenced Telenor more than any other company because Telenor Pakistan is the subsidiary of Telenor which is Denmark¶s Company. Secondly, mobile phone is very cheap in Pakistan yet Pakistan is far behind in technology as compared to other countries. So every newly introduced telecommunication technology is derived from international market. Environmental Uncertainty:
y Simple or Complex:

A considerate no. of external elements is present in the external environment. Most importantly due to the technological advancements the environmental uncertainty level

is complex for Telenor as in the telecommunications sector the elements keeps on changing very frequently.
y Stable or Unstable

The external environment of Telenor is unstable and highly uncertain.
y Adapting to environmental uncertainty

Structure at Telenor is adaptive to the environmental uncertainty, For this we will refer them boundary spanning, differentiation and integration among departments.
y Framework for organizational Response to Environmental uncertainty

At Telenor, the tasks performed are of considerable variety. For the tasks at higher-level management, standardization level is very high. The decision making about the main tasks or higher level plans are centralized to management. At the low level, where routine tasks are performed, requires high experiences while at top-level managers are skilled persons and both are formally trained.

Implications of departmental design:

Departments following the engineering technology have the mechanistic structure with following characteristics:
y y y y y

Moderate Formalization Moderate centralization Formal training or experience required Moderate span of control Written and verbal both communications

Information technology: Telenor is using good quality Information systems in their operations due to great complexity in their tasks. By adopting the latest technologies they can achieve their goals and increase their competence and effectiveness. For the convenience of their customers they have maintained a website through which they can find the related information. Intranets and extranets are maintained in order to be well corresponded with the current situation. Interdependence among departments: Implication for the structure: Telenor Pakistan is a POOLED structural form of interdependence among departments. Where the success of every department contributes to the success of organization as a whole here standardize rules and regulations are followed.

Organizational size, lifecycle, and control
Each organization formed evolves through the four stages of life cycle, changes takes place in structure, control systems, innovations and goals. Telenor lies in the Elaboration stage as it is a large organization, rules and regulations and extensive control systems are already formed. Management Control System:

A complete management control system is being operated by the professionals in order the access the quality control, financial reports.

Organizational Culture
Organization design and culture:

Relationship of Environment and Strategy to Corporate Culture
Telenor Pakistan has an Adaptability Culture, with flexibility being the need of the environment and strategic focus being external. The organization has a clear vision, with the goal of increasing growth, profitability, and market share. The employees are paid for performance. The individual employees are made responsible for contributing in gaining the organization¶s goal, and in return they are rewarded with incentives thus keeping the employees motivated. Ethical Value in Organization: sources In Telenor Pakistan, the sources for the ethical values are the organizational systems. As the organization maintain structure follows the policies, rules, code of conduct and reward system. On the other hand Personal ethics and Organizational Culture are also main source in Telenor. INNOVATION & CHANGE TYPE OF CHANGE USED TO ACHIEVE STRATEGIC ADVANTAGE: Products and services strategy is used at Telenor in order to increase the market share by offering new services but the uncertainty is very high about the suitability and success of an innovation is very high

Conclusion
y Structure of Telenor is mechanistic and functional structure. y Decision-making is highly centralized. y Telenor has adopted formal rules and procedures whereas some of work is done informal

between departments.
y The important success factor for Telenor is differentiation.

y Because the environment is very uncertain and increasing competitiveness and

profitability it is providing high quality, excellent service, giving top priority to meeting customer requirements and charge low operating cost from their customers. y The employees of the organization are committed to their company and the company is taking care of the need of its employees. y It has many major competitors which are trying their hard to get the market share, but all the strategies of the competitors are successfully watched and answered.

Recommendations
o Telenor¶s organizational structure is highly Functional, and the

Environment is currently unstable, organization is suited well to the environment. But organization should also focus on the changing trends in the Environment, and make the structure flexible enough for any sudden changes in environment.

o Telenor as described in the report has a functional structure with well-

defined department. The coordination and communication is enhanced by the cross functional teams.

o After viewing the functioning of the organization it is recommended that

the organization could have a Hybrid Structure, between the characteristics of functional and horizontal structures. Horizontal model offered the best chance to gain a faster, more efficient approach to a customer service.